What will cause my insurance premium to increase?
A number of factors and characteristics come into play when Penn National Insurance calculates your auto insurance premium. Many of the factors are changes you may make:
- Increasing coverages such as Bodily Injury and Property Damage Liability, Medical Payment and Personal Injury Protection options
- Lowering your deductibles for Collision and Other-Than-Collision coverages
- Changing the use of your vehicle, including the number of miles driven annually or to work
- Adding a new driver, particularly one who is young or a driver with limited driving experience
- Moving to an area where insurance rates are higher
- Purchasing a new vehicle and adding it to the policy
- Accidents or moving violations
Additionally, insurance companies may increase rates due to the rising costs of claims (medical bills, vehicle repairs, lawsuits, etc.). A company’s rate change can only be applied at the policy’s next renewal date (not mid-term), and the rate change requires approval from the state insurance department.
Used with permission from Penn National Insurance